The mortgage approval process does not lack in rules, steps and requirements. However, following specific do and do not rules keeps you on the right track for a smooth and surprise free home loan closing.

Do This and Not That

Home loan approval is a detailed process. Mortgage lenders are required to review borrower’s income, employment, assets, credit, residential ownership history and much more. In fact, each of the items to be reviewed goes deeper than many realize.

For example, a lender reviewing a credit is more than looking at credit scores, trade-lines, monthly debts, and historical performance. Lenders must also investigate the nature of inquiries appearing on a credit report.

Additionally, lenders must monitor a borrower’s credit activity after puling credit and up until the loan closes.

Home Loan Do’s and Do Not’s List

With all that in mind, following the do’s and do not’s below protects you from many unwanted surprises during your home loan experience:

  • DO Provide ALL requested documentation
  • DO NOT change employment status
  • DO NOT make any large purchases with cash or credit
  • DO NOT apply for any new credit
  • DO NOT co-sign on a loan for anyone else
  • DO NOT make any large deposits into your accounts
  • DO NOT change your marital status
  • DO NOT make late payments on anything
  • DO NOT have your credit pulled
  • DO NOT dispute anything on your credit report

Whether applying for an FHA, VA, Conventional, USDA or Jumbo loan these tips are very important. While loan guidelines differ between products, the core fundamental rules do not.

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